Selling a Dental Practice FAQs

Find answers to the most common questions we receive.

Selling A Dental Practice FAQs

Over the years, ADS brokers have worked with many dentists to facilitate successful practice transitions. If you're a
dentist looking to sell a dental practice, take a look at some of our most frequently asked questions to see if yours
is on the list. Don't see your question on the list or need more clarification? Get in touch with a local dental
transition broker to learn more about how to sell a dental practice.

Q: What is a reasonable Covenant Not to Compete?
A: The area of the Covenant not to compete (non-compete clause) is different for each dental practice. The distance
for the Covenant is usually correlated to the service area of the practice which is where most of the patients live
and/or work.

Q: Are covenants (non-compete clauses) enforceable?
A: Yes, when they are written correctly. Consult with an experienced transition broker and/or legal professional to
ensure your Covenant not to Compete is enforceable.

Q: Will my patients accept a new dentist?
A: Your patients will accept a new doctor if the introduction and transition are handled the right way. Your
endorsement, coupled with staff acceptance and enthusiasm, is the key.

Q: Once my practice is listed, how long will it take to sell my practice?
A: The adage, "Location, location, location" has an impact on the sale of a dental practice. In a good area, the
transaction can happen in as few as 6-12 weeks after the valuation is completed. In a rural or an area with less
demand, it could realistically take 2-5 years. The length of time on the market depends not only on the practice
location but also on several other variables.

Q: When my practice is listed for sale, how will it be marketed?
A: In addition to a listing on our website, we have an exclusive relationship with Dental Economics which publishes
all our listings on a monthly basis. Additionally, many brokers are well connected in the dental industry and publish
and distribute newsletters to dentists through their network.

Q: How do you value a practice?
A: We utilize four different methods which we weigh and average in order to determine fair market value. Learn more
about dental practice valuations here.

Q: How can I increase the value of my practice?
A: If you're thinking about selling your dental practice in the future it can benefit your bottom line to make
strategic investments in your business. An experienced dental broker can help to make recommendations that will add
the highest value to your practice. Some basic improvements include cleaning up clutter, increasing your number of
patients, and production.

Q: I have read that dental practices are worth 70% of their gross receipts averaged over the past three years.
Is that true?
A: While three years of financial information is important to determine the value of an office, rules of thumbs are
simplistic and don't usually provide the correct value. To find out the true value of a dental office an expert in
transitions should be consulted to conduct an evaluation or full valuation on the practice.

Q: Will my practice lose patients when it is transitioned to a new dentist?
A: There is always the possibility that your practice could lose patients in the process of transitioning to a new
dentist. However, your patients will be more likely to accept a new dentist if the transition plan and
introduction are communicated clearly to current patients. Your endorsement, coupled with staff acceptance and
enthusiasm, can play a key role in maintaining your patient list through a transition.

Q: What should I consider before hiring an associate?
A: When deciding if hiring an associate is the right move for your practice, there are many elements to consider. The
higher your gross production and the more patients you have, the better candidate you become to hire an associate. If
you're lacking patients, initially you'll be subsidizing the associate and your personal income will likely
suffer. Ultimately, every dental practice is different.